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/biz/ - Business & Finance

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16842785 No.16842785 [Reply] [Original]

>> No.16842806
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16842806

>>16842785
Banks not having any cash on hand when they can 10x leverage literally all their holdings in a nothing fails boomer stock market is fucking retarded.

The whole premise is ridiculous. Let overnight lending rates go crazy , let them fix it themselves. You pay 10,000% APR (keep in mind this is anual rates split into a nightly chunk) a couple times and you make sure you never have to again.

>> No.16842833
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16842833

>Banks not having any cash on hand when they can 10x leverage literally all their holdings in a nothing fails boomer stock market is fucking retarded.
>The whole premise is ridiculous. Let overnight lending rates go crazy , let them fix it themselves. You pay 10,000% APR (keep in mind this is anual rates split into a nightly chunk) a couple times and you make sure you never have to again.

>> No.16842925

>>16842785
oh yes goy, only 200 billion! normal levels goy!

>> No.16843194

>>16842785
https://wolfstreet.com/2020/01/09/fed-drains-45-billion-from-repo-market-back-to-oct-level-t-bill-purchases-continue-balance-sheet-shrinks-by-most-since-qt/

>wolfstreet

>> No.16843214

Real moment of truth is when the fed stops doing these overnight repos. What happens to the lending rate then

>> No.16843238

>>16843214
the fed will unironically never stop
the fed is owned by the banks
the same institutions that own the fed
the fed is a privately owned institution, meaning that its purpose is to enrich its shareholders.
i.e. the banks
therefore, this will go on forever

>> No.16843279

They'll pull the rug out before elections as a last ditch effort to get Trump out of office.

>> No.16843314

>>16842785
>And the Fed’s total assets on its balance sheet as of the evening of January 8, given the $45 billion drop in repos and the $19 billion increase in Treasury Securities, fell by $24 billion.
This decline is so minuscule that you have to put it under a microscope to see it among $4.15 trillion in assets on the balance sheet, but it’s the biggest week-to-week decline since July 2019, when the Fed was still engaged in

Literally the article